Prada looks to streamline processes as profit slides

Italian fashion house Prada has said it is reviewing its organisation to streamline processes after reporting a 26.4% profit slide for the first nine months of the year.

Group net income amounted to EUR235.1m (US$257.4m) for period to 31 October, compared to EUR319.3m in the same period of the prior year.

Net revenues edged up 1.2% to EUR2.58bn from EUR2.55bn last year.

Retail sales were up 3.8% to EUR2.25bn, while wholesale sales fell 15.9% to EUR295.5m. By region, both Japan and the Middle East saw sales grow by 10%, Europe and the Americas each rose 9%, while Asia Pacific declined 5%, and within that, Greater China fell 9%.

With the macroeconomic environment worsening, Prada CEO Patrizio Bertelli said the company is further stepping up its commercial and product-related initiatives in the luxury goods segment to strengthen relations with its "increasingly sophisticated and demanding" customer base.

"At the same time, we have implemented further cost containment measures following a review of all business processes," he explained.

Bertelli added that Prada is reviewing the group's organisation to streamline processes and further strengthen it with new key people.

"In the medium-term, we remain optimistic about the outlook for the segment and confident that the undoubted stylistic leadership of our brands and our positioning – with global coverage already secured by our extensive retail network – will be key factors in facing up successfully to future challenges."

P.S: If you liked this article, you might enjoy the just-style newsletter.
Receive our latest content delivered right to your inbox.

I want to hear about apparel and textile industry webinars and relevant offers

You are agreeing for just-style.com to send you newsletters and/or other information about our products and services that are relevant to you by email.
Clicking above tells us that you're OK with both this and with our privacy policy, terms and conditions and cookie policy.
You can opt out of individual newsletters or contact methods at any time in the 'Your Account' area.
We'll only keep your data for as long as you choose to receive information from just-style.